During each year from 1862 to 1879, inclusive, the exports of specie exceeded the imports.  The largest excess of such exports over imports was reached during the year 1864, when it amounted to $92,280,929.  But during the year ended June 30, 1880, the imports of coin and bullion exceeded the exports by $75,891,391, and during the last fiscal year the excess of imports over exports was $91,168,650.

In the last annual report of the Secretary of the Treasury the attention of Congress was called to the fact that $469,651,050 in 5 per cent bonds and $203,573,750 in 6 per cent bonds would become redeemable during the year, and Congress was asked to authorize the refunding of these bonds at a lower rate of interest.  The bill for such refunding having failed to become a law, the Secretary of the Treasury in April last notified the holders of the $195,690,400 6 per cent bonds then outstanding that the bonds would be paid at par on the 1st day of July following, or that they might be “continued” at the pleasure of the Government, to bear interest at the rate of 3-1/2 per cent per annum.

Under this notice $178,055,150 of the 6 per cent bonds were continued at the lower rate and $17,635,250 were redeemed.

In the month of May a like notice was given respecting the redemption or continuance of the $439,841,350 of 5 per cent bonds then outstanding, and of these $401,504,900 were continued at 3-1/3 per cent per annum and $38,336,450 redeemed.

The 6 per cent bonds of the loan of February 8, 1861, and of the Oregon war debt, amounting together to $14,125,800, having matured during the year, the Secretary of the Treasury gave notice of his intention to redeem the same, and such as have been presented have been paid from the surplus revenues.  There have also been redeemed at par $16,179,100 of the 3-1/2 per cent “continued” bonds, making a total of bonds redeemed or which have ceased to bear interest during the year of $123,969,650.

The reduction of the annual interest on the public debt through these transactions is as follows: 

  By reduction of interest to 3-1/2 per cent. $10,473,952.25
  By redemption of bonds 6,352,340.00
          
                                              _____________
    Total 16,826,292.25

The 3-1/2 per cent bonds, being payable at the pleasure of the Government, are available for the investment of surplus revenues without the payment of premiums.

Unless these bonds can be funded at a much lower rate of interest than they now bear, I agree with the Secretary of the Treasury that no legislation respecting them is desirable.